INCOME TAX and NATIONAL INSURANCE CONTRIBUTIONS – allowances
for travel and subsistence costs- character of allowances – whether earnings under
ITEPA Part 3 Chapter 1 – Yes – or sums treated as earnings under ITEPA Part 3
Chapter 3 – No – whether recipients had permanent or temporary workplaces –
permanent – travel costs ordinary commuting expenses and not deductible –
whether allowances within dispensations granted pursuant to ITEPA s65 –No –
whether dispensations could lawfully be granted – No
JUDICIAL REVIEW – whether appellants had legitimate expectation that
allowances would not be subject to income tax and NICs and that dispensations
would not be revoked and HMRC would not seek income tax and NICs from
employees retrospectively – No
Whether appellants under obligation as employers to make PAYE deductions in
respect of allowances paid – Yes – appeal and judicial review application dismissed.